The farmgate price of milk will go up May 1, 2024, rather than Feb. 1, after a review of the national pricing formula and consultation with stakeholders.
The increase will be 1.77 per cent, or about 1.5 cents per litre for milk going into processing plants, the Canadian Dairy Commission said Wednesday.
The commission had already published this increase in October, but said Wednesday that “exceptional circumstances” led to the decision to postpone its implementation.
The milk pricing formula includes 50 per cent of the year-over-year change in cost of production and 50 per cent of the change in the Consumer Price Index, or overall inflation.
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After the commission published its proposal for the national pricing formula last month, however, the Canadian Federation of Independent Grocers (CFIG) invoked an “exceptional circumstances” process that leads to an additional round of consultations between the CDC and other stakeholder organizations.
Those stakeholder groups include the Consumer Association of Canada, Dairy Farmers of Canada (DFC), Dairy Processors Association of Canada, Restaurants Canada and the Retail Council of Canada, along with the CFIG.
During consultations, DFC said it recommended the delay because of ongoing food inflation.
Grocery stores have been under pressure from consumers and the federal government to stabilize prices, although some observers say most of the price increases are due to multiple factors within the supply chain.
Price changes for consumer products will vary on those factors.
Officials noted Wednesday the 1.77 per cent increase is well below the current overall inflation rate of 4.4 per cent.
— Karen Briere reports for the Regina bureau of the Western Producer.
